Can Bitcoin crash the high cost of living around the world economy?

[Awaklara]

Should the government switch to Bitcoin to enable them stabilize the economy?  If the various government around the world accept Bitcoin,it will give Fiat a break and it will bounce back.

I just think governments in various countries wouldn’t do that to save their fiat currencies. Governments will push the use of their fiat for all transactions, not replace it with another currency. When a lot of people leave or convert their fiat to another currency, whether it’s dollars or Bitcoin, what actually happens is their fiat loses value. Bitcoin does have hedging potential and can be used for transactions, but if you compare it to saving the value of fiat in a country facing a crisis, that might be tough and would require a lot of overhaul in the country’s financial system.

[davis196]

With the high cost living around the world and the nature of fiat fluctuating here and there, can Bitcoin do the unthinkable? Because fiat is no more valuable as it used to be. Bills rising above fiat and the various government around the world grappling to stabilize their economy yet it's not working. Should the government switch to Bitcoin to enable them stabilize the economy?  If the various government around the world accept Bitcoin,it will give Fiat a break and it will bounce back.

El Salvador switched to Bitcoin(for a while and the USD was still accepted as a payment method) and what was the result? Bitcoin adoption failed in a small and underdeveloped country like El Salvador, why do you think it would succeed in bigger and more developed countries?
The average inflation in the Eurozone is around 3%. Why would the European countries adopt BTC only to fight low inflation rates? The USA won't adopt BTC as a legal tender because the US dollar is still the dominant global currency, which gives certain benefits to the US financial system. How do you imagine Bitcoin "crashing" the cost of living? Fiat won't be "given a break" even if BTC gets potentially adopted as a legal tender. Most countries will keep their fiat currencies for sure. Bitcoin is great the way it is.

[shinratensei_]

Countries are accepting bitcoin already, but most of them only recognize civil right to property or commodity. The truth is, bitcoin is not some magical tool to solve world hunger or poverty but a tool for financial independence.
It is a good hedge but the effectiveness to overcome high cost of living is still questionable as there is only one country that has tried the hypothesis which is El Salvador and they seems to be doing fine.

If you want to buy bitcoin for a hedge, good. However, it doesn't mean you or any state that adopt it will automatically become rich or solve the financial problem they have, we need to acknowledge this fact.

[Rustam Meraj]

To think that any government would give up their printing machine and allow fiat to bounce back is to miss point of why politicians love centralized control of banking systems. I think no single government in the world will ever give themselves up for benefit of stable economy to Bitcoin, it would wipe out their ability to change interest rates and create out of thin air national debts. Move from top down is yet to come but the real change is already underway from the bottom up. Self custody and hard money assets are being taken up by ordinary citizens as form of personal get out of jail free card. Bitcoin was not created to be temporary stop gap step to save sick fiat currencies, but other to get rid of broken ways of central banks.

[free-bit.co.in]

Countries are accepting bitcoin already, but most of them only recognize civil right to property or commodity. The truth is, bitcoin is not some magical tool to solve world hunger or poverty but a tool for financial independence.
It is a good hedge but the effectiveness to overcome high cost of living is still questionable as there is only one country that has tried the hypothesis which is El Salvador and they seems to be doing fine.

If you want to buy bitcoin for a hedge, good. However, it doesn't mean you or any state that adopt it will automatically become rich or solve the financial problem they have, we need to acknowledge this fact.

Let's be realistic. The Bitcoin experiment in El Salvador has failed.

The people of El Salvador have refused to use it as a currency. Meanwhile, their economy has shown little to no significant progress since Bitcoin was integrated into it. As a result, they were forced to accept IMF terms in exchange for loans to save their struggling economies.

As you said, Bitcoin is a good risk hedging tool, but it is not a magic bullet to solve a country's economic problem. El Salvador is no exception.

[Synchronice]

With the high cost living around the world and the nature of fiat fluctuating here and there, can Bitcoin do the unthinkable? Because fiat is no more valuable as it used to be. Bills rising above fiat and the various government around the world grappling to stabilize their economy yet it's not working. Should the government switch to Bitcoin to enable them stabilize the economy?  If the various government around the world accept Bitcoin,it will give Fiat a break and it will bounce back.

Do you have any idea what are you talking about? Inflation is when more money is printed and less things are done. If you don't work and print money, nothing will change for better but if you work more than the money you print, then everything will change for better. Bitcoin can't magically cause deflation and honestly, deflation isn't good either. A small inflation is healthy and necessary too.

By the way, what do you mean when you say that government should switch to Bitcoin? Do you really think that it's normal for any government to convert the budget of the government into Bitcoins? Do you think it's normal to play with the fate of the people, daily with 10% or similar drop in coin's price?

[sunsilk]

With the high cost living around the world and the nature of fiat fluctuating here and there, can Bitcoin do the unthinkable? Because fiat is no more valuable as it used to be. Bills rising above fiat and the various government around the world grappling to stabilize their economy yet it's not working. Should the government switch to Bitcoin to enable them stabilize the economy? 

What's the unthinkable? the high cost will continue to happen and there won't be any shrinking even if bitcoin becomes the means of payment for these high cost of living.

The government will continue to ask what has to be paid for them to fund the economy.

If the various government around the world accept Bitcoin,it will give Fiat a break and it will bounce back.

No, we have to stop thinking about bitcoin saving an economy. There are a lot of factors that needs to be fixed for it to happen.

[tread93]

You know that more countries accept bitcoin than reject it today?
 
You have to make sure what your argument is accepting in terms of first, is it as a currency or as an investment asset or as a foreign exchange?
And the answer is not necessarily, even if the government accepts bitcoin it does not necessarily stabilize the economy because it will go back to how economic practices in your country.

The high cost of living is because the income is not greater than your expenses, therefore it is considered high, so this must go back to how your standard of living and the government in managing public salaries in its policies.
because it will be useless even though using bitcoin if in how your cost of living is not well controlled, and the salary you get is not greater than your expenses even though using bitcoin.

There will always be fees to consider whilst you spend your bitcoin the cost of moving your coins plus any other fees a platform my include or perhaps even a government could impose those as well.

I mean in terms of the effect that bitcoin has on the purchasing power and being able to stretch your money further and not lose value due to inflation i feel to answer OPs post yes it does have the ability to help in that sense but more recently with the price cut in half that's a harder argument, but historically yes.

[obuoma]

I don't think that Bitcoin was designed to crash the cost of living, it was created as money and a pro freedom alternative to the fiat system . Through Bitcoin, many millionaires have been made but that does not equate to crashing the price of commodities because that depends on a lot factors and mostly country specific although there is inflation on the rise at the global level. Bitcoin simply offer people a way out of inflation and a better and more efficient monetary system plus a better way to hedge against the inflation in fiat.

[Itz-prisigold]

I don't think that Bitcoin was designed to crash the cost of living, it was created as money and a pro freedom alternative to the fiat system . Through Bitcoin, many millionaires have been made but that does not equate to crashing the price of commodities because that depends on a lot factors and mostly country specific although there is inflation on the rise at the global level. Bitcoin simply offer people a way out of inflation and a better and more efficient monetary system plus a better way to hedge against the inflation in fiat.

I agree. Yet another factor to keep in mind is that despite Bitcoin's adoption has increased,  individuals will still be faced with the same practical economic problems, for example, the problem of housing, skyrocketing energy costs, food production concerns, and taxation.  Some of these key factors are still affecting cost of living.

Bitcoin can really give people more control over the way they store and transfer value,  most especially in areas where our local currencies is rapidly losing their value. That is a good thing, but that should not be seen as a magic solution to the issues of more expensive living conditions,  so while bitcoin can really help preserve wealth, but reducing the cost of living still requires economic conditions to improve.